Credit cards The pros and cons.

[crowdpleeser]

I need to get a credit card because I want to buy some from the internet. I have enough money in my account for it, but what will happen after? Will I have to have a certain amount of money in my bank account every month? (I'm with the halifax). What are the advantages and disadvantages of having a credit card basically.

[sddsddean]

There is only one real disadvantage with any credit card. If you do not pay off the bill at the end of each month, you will be charged interest. The amount of interest varies between different cards. I have had a credit card for over 20 years, always pay it off every month(thus no interest) and have had no problems. Main advantages; its not as bulky as money or cheque books, if you lose it no one else should be able to use it. Some cards have other advantages. I use Barclaycard and most items bought on it are automatically insured (so if you drop the new TV on the way home from the shop, you are OK). I would say the advantages way outnumber the disadvantages as long as you are normally careful about your money and pay it off each month.

[robber1]

I agree with the user above. You say that you want it to buy things on the internet, and that you bank with the Halifax. So do I, so I bank on-line with the Halifax and when the Visa bill comes in I can pay it in full or make a payment of my choice, all on the computer. You do not have to keep "a certain amount of money" in your account to use the card, but you will have to make sure that sufficient funds are in the account to cover the payment. You use the card as little and often as you wish.

[Spongebob]

My credit-card was used fraudulently after using it for internet shopping. I assume this is rare but probably worth bearing in mind. I would be interested to know if anybody else has had this problem.

[robber1]

Good point spongebob, it can happen. The card company though refund any money lost this way, although it is an inconvenience. Touch wood, I have had no trouble with credit cards over many (too many!) years.

[katiesara]

I have a credit card with Cahoot (very low interest rate if you don't manage to pay it off each month), but they also give me a "web card", I have an icon that when I want to buy something on the Internet I use, and it creates me a new card number each time with the exact limit on it that I specify, i.e. the value of the goods I'm about to buy. Good system, works for me!

[gilf]

My advice would be get one with a really small limit �200 or so, this will mean that you will not be able to go made and spend loads of money which when you have a credit card is very easy.

[Cathy]

Have you thought about using a debit card? Most bank cards seem to have either Switch or Visa Delta and the money goes straight out of your account, in much the same way that a cheque works. I use this as I think credit cards are too easy to get into trouble with.